One of the Reasons That Price Elasticities of Demand Are

question 100

Multiple Choice

One of the reasons that price elasticities of demand are always stated as positive numbers is because:

• A) the numerators and denominators of the formula are both negative.
• B) the numerators and denominators of the formula are both positive.
• C) price increases always lead to increases in quantity demanded.
• D) price decreases always lead to decreases in quantity demanded.
• E) price elasticities are always negative, so we ignore the sign.

Recognize the process and outcomes of resource allocation in perfectly competitive markets.

Identify the factors leading to movements along or shifts of the long-run average cost curve in response to industry dynamics.

Understand the characteristics of constant-cost, increasing-cost, and decreasing-cost industries.

Identify the direction of shifts in the long-run supply curve for different types of industries.

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Definitions:

Members' Voluntary Winding Up

is a process initiated by the shareholders of a solvent company to voluntarily dissolve the entity and distribute its assets.

Insolvent Company

A company that cannot pay its debts as they come due or has liabilities exceeding its assets.

External Auditor

A professional firm or individual outside of an organization hired to examine its financial records and attest to the accuracy of its financial statements.

External Administration

External administration pertains to a process where an external person or entity is appointed to investigate, manage, and potentially restructure a financially distressed company's affairs to recover debts.